HSB 725

1, to define “heated tobacco product” for the purposes of Code chapter 453A. _____ tobacco by means of a device without combustion of the tobacco or by heat generated from a combustion source that only or primarily heats rather than burns the tobacco; “heated tobacco product” does not include a cigarette.1(28) by including heated tobacco products in the definition of “tobacco products” for the purposes of Code chapter 453A (cigars, other tobacco products, and alternative nicotine and vapor products).1. Under current law, a tax is imposed on tobacco products in the state and upon any person engaged in business as a distributor of tobacco products at a rate of percent and an additional percent of the wholesale sales price of the tobacco products, except little cigars and snuff. By including heated tobacco products in the definition of “tobacco products”, heated tobacco products are subject to this tax. However, the bill exempts heated tobacco products from the taxes imposed upon the use or storage by consumers of tobacco products in the state, and upon consumers, at a rate of percent and an additional rate of percent of the cost of tobacco products.1(4)(a) to include in the definition of “cigarette” a heated tobacco product for the purposes of Code chapter 453C (tobacco product manufacturers —— financial obligations).